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VANPO SUSTAINABILITY: THE IMPACT OF REQUIREMENTS FOR ECONOMIC SUSTAINABILITY ON VISUAL ARTS NON-PROFIT ORGANISATIONS IN JOHANNESBURG James E French A research report submitted to the University of the Witwatersrand Faculty of Humanities, School of Arts, in fulfilment of the requirements of a Masters degree in Arts and Culture Management Johannesburg 2015 ABSTRACT The Civil Society sector in South Africa has been experiencing a funding crisis for the past 20 years. The arts represent a small portion of Civil Society, and the visual arts a small part of the art. This research considers how these visual arts non-profit organisations (VANPOs) in this economic microsphere have been challenged to survive and sustain their missions in what is a competitive, fluctuating and complex environment. This study scrutinizes the concept of sustainability and the visual arts non- profit sector’s capacity for implementation of economically sustainable projects in the current economic and funding environment in South Africa. It outlines the complex and challenging nature of sustainability for VANPOs. The VANPOs, all small organisations, have limited human and cash resources to implement sustainability strategies while fulfilling their missions. Furthermore the funding environment focuses on short-term project grants and production-oriented efforts. This does not offer the organisations much opportunity towards long-term organisational development nor strategic resourcefulness. At the same time they struggle to remain compliant with government regulations and donor requirements. This research considers methods of assessing sustainability and the perspectives of professionals involved in the management of VANPOs. It examines the challenges they have faced in finding ways to implement sustainability and in the implementation of ‘sustainable’ projects. The brief case studies focus on how five VANPOs have responded to diminishing funding. 1 TABLE OF CONTENTS Abstract ...................................................................................................................... 1 Table of Contents ...................................................................................................... 2 Acknowledgements ................................................................................................... 3 Glossary of terms ...................................................................................................... 4 Chapter 1: Introduction ............................................................................................. 5 1.1 The aim of this Research ................................................................................. 6 1.2 Theoretical Framework ................................................................................... 6 1.3 Significance of this study ................................................................................ 10 Chapter 2: Literature ............................................................................................... 12 2.1. Arts Management ........................................................................................... 12 2.2. Non-profit Organisations (NPOs) in South Africa ........................................... 15 Conclusions drawn from the literature ................................................................... 38 Chapter 3: Methodology and research design ..................................................... 40 3.1. Research Design ............................................................................................ 40 Chapter 4: STUDY ................................................................................................... 47 4.1. Study I: The Johannesburg Art Foundation (1971 to 2001) ........................... 47 4.2 Study II: Artist Proof Studio (1991-) ................................................................. 55 4.3. Study IV: The Bag Factory Artists’ Studios .................................................... 59 4.4. Study III: The Joubert Park Project ................................................................ 64 4.5. Study V: Assemblage ..................................................................................... 67 4.6 Summary of the studied organisations in terms of the 5 R’s ........................... 72 Chapter 5: ARGUMENTS ........................................................................................ 76 5.1. The definition and use of the term ‘sustainability’. .......................................... 76 5.2. Identifying and examining ways in which VANPOs have tried to improve their sustainability in the past decade ........................................................................... 77 5.3. Identifying the key factors that have encouraged or undermined the sustainability of these VANPOs. ............................................................................ 78 Chapter 6: RECOMMENDATIONS .......................................................................... 89 6.1 The Planning Dilemma .................................................................................... 91 6.2 Short-Term Sustainability ................................................................................ 91 6.3 Mission Manipulation ....................................................................................... 92 6.5 Balancing Sustainability .................................................................................. 93 6.6 VANPO Business Practice .............................................................................. 94 6.7 Urgent Audience Development ....................................................................... 95 CONCLUSION .......................................................................................................... 96 REFERENCES .......................................................................................................... 99 INTERVIEWS .......................................................................................................... 103 2 ACKNOWLEDGEMENTS I would like to thank the numerous people who have supported this research process and contributed towards it, in particular the interviewees Bernadia Viransami, Sara Hallatt, Janet Watts, Steven Sack, Josef Gaylard, Monica Newton, Louise Van Der Bijl, Anthea Pokroy, Cara Maccallum, Dorothee Kreutzveldt, Mphapho Rangoato Hlasane, Gail Behrman, Steven Sack and Monica Newton. Each of their insights and experiences not only contributed greatly to this research but also identified a group of professionals dedicated and committed to creating platforms and providing facilities for the artists of our country. I would especially like to thank my father, Edward French, my brother Matthew French and his family, and my friend Anne Pappenheim, for their consistent support, advice and input towards this research report. Lastly I would like to thank Cynthia Kros for her supervision and support throughout the later process of this report. 3 GLOSSARY OF TERMS NPO Non-profit Organisation, also referred to as a Non-Government Organisation (NGO) and more recently as a Non-profit Company (NPC) Funder An institution, either supported by the State or a foundation, which distributes funds to NPOs. Also referred to as grantmakers or donors. VANPO Visual Arts Non-profit Organisation PBO Public Benefit Organisation Accountability The capacity of an NPO to fulfil their mission and all legal and contractual requirements in an honest and transparent way. DAC Department of Arts and Culture of South Africa NAC National Arts Council of South Africa NLDTF National Lottery Distribution Trust Fund (National Lottery) DSD Department of Social Development BASA Business Arts South Africa CIPC Companies and Intellectual Property Commission (formally CIPRO) SARS South African Revenue Service 4 CHAPTER 1: INTRODUCTION Since the nineties financial supporters of South African Non-profit Organisations (NPOs) have increasingly emphasised the need to become more sustainable. The white paper on arts and culture of 1996 emphasised the need for sustainable projects in which the State would ‘encourage self- sufficiency, sustainability and viability in the arts and culture.’ (DACST, 1996) Since the early 2000’s South African arts NPOs have been increasingly challenged to find ways to maintain their missions beyond the support of grantmakers. The concept of sustainability has proved problematic. The term spans across a mix of environmental, social and economic paradigms. The term has been applied carelessly as jargon, which creates ambiguity in its use by funders and government. While requiring sustainability from NPOs, expectations were unclear and often lacking contextual clarity. It has been left to NPOs, through their managers and directors, to find their own way to professionalise, monetise and sustain themselves, and somehow break the previous dependencies on grants without creating other dependencies. They also need to do this without compromising their constituencies, missions and legacies. Efforts to keep the VANPOs running have been hampered by the gradual but persistent withdrawal of international funding from post-apartheid South Africa and the international financial recession that has been present since 2008. While there seem to be numerous financial supporters for the arts, arts NPOs have complained that funding for the arts has been decreasing. This report proposes to clarify the definition of the term ‘sustainability’ in the context of the relationship between Visual Arts NPOs (VANPOs)

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